While rent-to-own agreements have traditionally been geared toward people who can’t qualify for conforming loans, there’s a second group of candidates who have been largely overlooked by the rent-to-own industry: people who can’t get mortgages in pricey, non-conforming loan markets. “In high-cost urban real estate markets, where jumbo [nonconforming] loans are the standard, there is a large demand for a better solution for financially viable, credit-worthy people who can’t get or don’t want a mortgage yet,” says Marjorie Scholtz, founder and CEO of Verbhouse, a San Francisco–based start-up that’s redefining the rent-to-own market.


For a developing country, there is a high rate of foreclosures in South Africa[citation needed] because of the privatisation of housing delivery.[neutrality is disputed] One of the biggest opponents of foreclosures is the Western Cape Anti-Eviction Campaign which sees foreclosures as unconstitutional and a particular burden on vulnerable poor populations.[52][53][undue weight? – discuss]


Rent to own homes offer a popular alternative for bargain home buyers and sellers. For buyers who do not have an adequate downpayment available, or are having difficulty qualifying for a traditional home loan, a rent to own (also referred to as 'lease option', 'lease to own', or 'owner financed') agreement can provide a smoother path to homeownership. In a rent to own arrangement, the buyer and seller typically agree to designate a portion of the monthly rent paid is applied to the purchase of the property. The home's purchase price is usually agreed to in advance so there is reduced risk of an increased price at the future purchase date.

For a developing country, there is a high rate of foreclosures in South Africa[citation needed] because of the privatisation of housing delivery.[neutrality is disputed] One of the biggest opponents of foreclosures is the Western Cape Anti-Eviction Campaign which sees foreclosures as unconstitutional and a particular burden on vulnerable poor populations.[52][53][undue weight? – discuss]
Rent-to-own homes will typically cost a bit more than the fair market value of other home rentals in the area. That’s because a portion of the monthly rent-to-own payment will be designated as a “rent credit” -- up to 20 percent of the monthly amount due -- will go toward the purchase of the home when the agreed-upon term expires. It’s important to make these monthly rent-to-own payments on time and as scheduled.
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